Consider the Following Portfolio of Assets

question 4

Multiple Choice

Consider the following portfolio of assets:

What is the variance of the portfolio (round to two decimals) ?

• A)(0.45) 2 (36.60%) + (0.55) 2 (76.56%) + (0.45)(0.55)(-0.2) * (6.05%)(8.75%) = 27.95
• B)(0.45) 2 (36.60%) + (0.55) 2 (76.56%) + 2(0.45)(0.55)(-0.2) * (6.05%) (8.75%) = 25.33
• C)(0.45)(36.60%) + (0.55)(76.56%) + 2(0.45) 2 (0.55)
• D)(-.2) *(6.05%)(8.75%) = 57.28
• E)(0.45)(36.60%) + (0.55)(76.56%) + 2(0.45)(0.55)(-0.2) * (6.05%)(8.75%) = 53.34

---

Definitions:

Inventory Status

This term describes the current state or levels of stock and inventory items within a business, indicating availability for sale or production use.

Specified Threshold

A predetermined level or point at which an action is triggered or a condition changes, often used in decision-making processes.

Supply Chain Manager

A professional responsible for overseeing and managing a company's supply chain and logistics strategy and operations.

Safety Inventory

Extra inventory held by a company to prevent stockouts caused by uncertainties in demand or supply, ensuring product availability.